3.The Rountree Oil Company is in the process of cleaning up a minor oil spill. The firm...
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3.The Rountree Oil Company is in the process of cleaning up a minor oil spill. The firm could do the work with one cleanup team or two teams. One team would cost $25 per month for five months. The two-team alternative would cost $40 per month for three months. If two teams are used, the firm can restart refining sooner and collect $10 in earnings in Months 4 and 5. Should Rountree Oil use one or two teams to clean up the spill? Base your decision on the IRR. (Hint: You want to look at the incremental cash flows between the two methods.)use Excell spread sheet to solve this problem
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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